South Carolina November 2022- Key Take Aways
Matt Linville of Bankers Exchange has deals in the pipeline and many requests for concessions. They have had a few people walking away from due diligence money. They are still receiving many questions about 1031. Matt reminded the group of the 180-day rule for 1031 exchanges where individuals have 180 days or until April 17 – whichever comes first to purchase replacement property.
David Lewis of Context Design Group remains busy but has seen some slow down with interest rates going up. Their current projects are 2-3 year projects – no longer 6-9 month projects. On one project, the lead time for 1 transformer is 2 years. Every month there is something different that is dragging the projects.
Tres Bagwell of Schaumber Development focuses on affordable housing. They are seeing a major supply issue with meter banks and transformers. They have a large 180-unit complex project in Berea. The goal is to have that project completed in March of 2023. They also have a project in Greenville that they are working on which received a 2021 tax credit award. They are hoping to break ground in May of 2023. SC Housing has not yet made 2022 tax credit awards.
Corey Memmott of Tax Credit Marketplace said that they will be busy until end of year. They have 12 deals that need to be closed by year end. They will end the year with 115 -120 million in rehab investment. They have a steady stream for 2023 and 2024. Some projects are being redesigned because of construction costs.
John Wright of McCoy Wright, Inc. is with an independent commercial real estate firm in Anderson. They are a little off where they were last year, but this is still their 2nd best year ever. They are working on many projects in downtown Anderson. Anderson continues to add new jobs but is lacking in downtown housing.
Jimmy Kimbell of Southern First is in a new building in downtown Greenville. The community is using the new building for events. They remain busy and continue to see out of town money coming in. There is still a lot of interest in The Upstate. He thinks there will be one more mid-December rate increase. He hopes to see rates going down end of 3rd qtr of 2023. Rates will decrease slower than they increased.
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